Highlands Natural Resources results highlights growth into two distinct businesses.
Highlands Natural Resources PLC (LON:HNR) financial results highlight a significant period in which the company has added a second distinct business.
As well as advancing its Colorado oil and gas assets the company also built a cannabidiol production business.
"The activities undertaken during the year secured our interest in a far larger oil and gas production business than we began the year with," said Robert Price, Highlands chief executive.
READ: Highlands Natural Resources makes rapid progress with new CBD operation
"We also established a vertically integrated CBD business in the US following the year end and we are delighted to report sales from that business already.
"Highlands now has two distinct operating divisions."
At the East Denver Oil & Gas project the company generated [pounds]1mln of revenue. It had two producing wells at the start of the year and six more came online during the year.
A farm-out deal provided a US$5.4mln injection of cash and left the company with 7.5% of the assets. The company continues to be positioned to benefit from all eight wells through the 2020 financial year.
In the CBD business, the company benefits from a rare gas discovery - providing a source of nitrogen, which is beneficial in the growing process - and a vertically integrated business.
During the year, a pilot project at a US cannabis growing facility saw nitrogen -hydrogen mix applied as an organic fertiliser and yields increased by up to 30%.
Price highlighted: "We have proved our ability to rapidly execute on our CBD strategy having established a business capable of generating multiple revenue streams in just four months since raising the funds.
"The year ahead presents Highlands with some significant opportunities and I look forward to updating shareholders regularly as we focus on building our presence in the rapidly expanding CBD market."
In terms of financial results, the company reported an operating loss of [pounds]4.49mln and a total comprehensive loss of [pounds]4.71mln.
It ended the year with [pounds]1.5mln of cash and equivalent.
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